FXStreet (Guatemala) – Analysts at Westpac noted the conditions of the New Zealand housing market and explained that after strong gains in 2015, house price inflation is set to take a step down over the next year
as a result of new lending and taxation regulations.
Key Quotes:
“We’ve already seen these changes prompt sharp moves in the Auckland housing market, and we expect nationwide house price inflation will slow over the coming year.”
“The RBNZ will be watching conditions in the housing market closely given their concerns that cuts in the OCR aimed at boosting consumer price inflation might also prompt a resurgence in the housing market, with associated risks for financial stability.”
“This will also be an important influence on spending more generally in the household sector.”
(Market News Provided by FXstreet)